Crowdfunding and the advantages of funding projects collectively

Crowdfunding

Funding projects with Crowdfunding: all the benefits of the collective funding system

The Crowdfunding, or on joint financing, it is considered by many a mere financing a business idea system. In reality, crowdfunding provides a series of advantages for the development of a certain product-service not found with other forms of financing.

#1 – Demand measurement

Given that crowdfunding investors and consumers are almost always the same person, the company receiving the grant can understand how much the proposal really like to the public before its official launch in the market, evaluating the number of people willing to invest their money for promote the idea: if it is appreciated by a large group of investors, it means that the article in question has all the credentials to be successful among consumers.

#2 – Public involvement in the design process

Being the financiers the first people interested in making sure that the subsidized product gets the favor of the public, they are also willing to actively participate in its design process to make it more useful and usable: the primary advantage of this mechanism is therefore that the prototype of a certain article is improved, enhanced and made perfect thanks to the valuable suggestions provided by various investors.

Crowdfunding

#3 – Obtaining feedback

Although, generally, to get the feedback and opinions of consumers on a new product, you must invest large sums of money in tests and surveys of various kinds, with Crowdfunding these costs are completely eliminated, because those who choose to finance projects deals directly (and for free) to give its own assessment to maximize the usability and the performance of the subsidized articles as much as possible: a considerable saving that allows the producer to allocate the money set aside for the further development of his company.

#4 – Use of complaints for product improvement

Collective financing is also the ideal tool to understand what an article close to launching in the market does not work properly : starting from the assumption that (usually) every finished product is the result of a long series of expensive tests in which the more different anomalies, with the Crowdfunding the beta version of a certain good is tested and questioned directly by the lenders , who support the producer completely free, putting all the complaints of the case and stimulating him to solve the problems encountered.

#5 – Evaluation and promotion of the final product

Crowdfunding also represents an important tool for evaluating and promoting the final product: given that the platform in which this particular research funding system is contained is open to a large number of investors, all the members have the opportunity to know, analyze and sponsor a certain item ensuring incredible visibility and putting the producer in the condition of not having to pay money for marketing activities.

#6 – Public loyalty

If, as already mentioned in the previous point, with this kind of collective funding it is possible to promote and sponsor a certain product for free by exploiting the visibility granted by the Crowdfunding portal, in the phase following the insertion of the article in the platform and the fundraising, the producer can also retain the members of the site who have expressed interest in their goods, continuing to keep them updated on the results achieved with the sale of the same.

These are the 6 great possibilities offered by Crowdfunding to those who choose to launch in the market of new products: a system to finance innovative projects at low cost and with considerable advantages.

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